Finance Act 2024

CTA 2010 U.K.

13 (1) CTA 2010 is amended as follows.

(2) In section 269DA(2) (meaning of banking company’s “surcharge profits”), in the definition of “RDEC”, for “Chapter 6A of Part 3 of CTA 2009 (trade profits: R&D expenditure credits)” substitute “Chapter 1A of Part 13 of CTA 2009 (R&D expenditure credit)”.

(3) In Part 8A (profits from exploiting patents etc)—

(a) in section 357BJB(3) (R&D expenditure not to be routine deduction in calculating IP profits), in paragraph (a)(ii), for “Chapter 6A of Part 3 of CTA 2009” substitute “Chapter 1A of that Part”;

(b) in section 357BLB(7)(e) (application of sections 1127 to 1131 of CTA 2009 for purpose of determining in-house R&D expenditure under Part 8A), at the end insert “as those provisions had effect before the amendments made by paragraph 9 of Schedule 1 to FA 2024,”;

(c) in section 357CG(4)(a) (R&D expenditure credit to be deducted in calculating IP profits), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”.

(4) In Chapter 9 of Part 8B (treatment of R&D credits and relief for purposes of Northern Ireland rate)—

(a) in section 357P(1) (overview of Chapter), for paragraphs (a) and (b) substitute—

“(a) Chapter 1A of Part 13 (R&D expenditure credit), and

(b) Chapter 2 of that Part (relief for loss-making, R&D-intensive SMEs).”;

(b) in the italic heading before section 357PA, for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(c) in section 357PA (R&D expenditure credit to form part of mainstream profits or losses)—

(i) in the heading, omit “under Chapter 6A of Part 3 of CTA 2009”;

(ii) in subsection (1)(a), for “Chapter 6A of Part 3” substitute “Chapter 1A of Part 13”;

(d) in section 357PD (amount of R&D tax credit for Northern Ireland company)—

(i) in subsections (2)(b), (3)(b) and (4)(b), for “given by section 1058(1A) of CTA 2009” substitute “of the cap by reference to the company’s PAYE and NIC liabilities for the accounting period”;

(ii) omit subsections (2A), (3A) and (4A);

(iii) after subsection (5) insert—

“(6) Sections 1112B to 1112E of CTA 2009 (determination of cap by reference to PAYE and NIC liabilities) apply for the purposes of subsections (2)(b), (3)(b) and (4)(b) as they apply for the purposes of section 1058(1) of CTA 2009.”

Commencement Information

I1 Sch. 1 para. 13: amendments have effect in relation to accounting periods beginning on or after 1.4.2024 by 2024 c. 3, Sch. 1 para. 16; S.I. 2024/286, reg. 2